According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with country A
A) wages and rents should fall in A.
B) rents and rents should rise in A.
C) wages should rise and rents should fall in A.
D) wages should fall and rents should rise in A.
Question 2
Which of the following is the treaty that took the participating countries from a free trade area to a common market?
A) The Treaty of Rome
B) The Maastricht Treaty
C) Single European Act
D) Treaty on European Union
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